Action not words: RPP makes expected interest rates rise despite gov't pleas

The Monetary Policy Council (RPP) did not yield to government pleas and yesterday raised all three National Bank of Poland (NBP) interest rates by 1.5 points. "This is not a penalty for the government, we only want to curb inflation, which reached 11.6%, the highest level in two years," said NBP president Hanna Gronkiewicz-Waltz. The lombard rate went up to 23%, the discount rate to 21.5% and the intervention rate to at least 19%. The government and many economists pleaded for the RPP not to raise the rates as this could slow economic growth and increase unemployment, which is also reaching record levels. However, the government did not support its appeals with firm anti-inflationary measures the RPP expected, in particular liberalization of food imports. (Parkiet, page 1, Gazeta Wyborcza, page 1)